UK Fintech Freetrade Might Cut Up to 15% of Staff Members

During an internal “All Hands” meeting held this past Thursday (June 9, 2022), the challenger stockbroking app, Freetrade, revealed that it will be implementing redundancies for around 15% of its staff members.

Freetrade‘s management recently noted that it is planning to make up to 15% of its team redundant.

When asked to comment on the matter, a representative from the firm said:

“This is a prudent action that is being taken to reduce costs and extend Freetrade’s cash runway. This is being done from a position of strength, following a significant fundraise of £30m.”

The Fintech firm has offered staff members the chance to apply for voluntary redundancy, in order to reduce the number of compulsory redundancies that might be required.

The internal Slack message recently sent by company CEO Adam Dodds noted:

“As I announced today at all hands, I’ve reached the difficult conclusion that we need to reduce our headcount. This is a tough decision. Nobody ever wants to have to do this. It’s essential that we take this action now so that we can put Freetrade in a position to succeed in the short term and the long run.”

Dodd’s message to staff members further noted:

“Global stock markets have been falling and funding for businesses like ours has slowed. It’s essential that we focus now, more than ever, on building a sustainable business on a strong financial footing. By taking this difficult step now, we will ensure we can preserve our cash for as long as possible. This is never an easy process and I want to thank all of you for your impact and contribution to our mission.”

15% of Freetrade’s approximately 300 staff members might mean that as many as 45 workers could face redundancy.

The onslaught of redundancies, which has also impacted Fintech Klarna and Curve recently, isn’t affecting all industry participants.

At present, Revolut has listed around 272 open positions on its official website.

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